In-Neck Pattern: A Bearish Continuation Signal
What is the In-Neck Pattern?
The In-Neck pattern is a two-candle bearish continuation pattern that appears during a downtrend.
First Candle – Strong Selling Pressure
A long bearish candle forms, confirming strong selling momentum in the market.
Second Candle – Limited Recovery
A bullish candle opens lower and closes near the previous candle’s close, showing weak buying interest.
What Does It Indicate?
The pattern shows that buyers fail to push prices higher, allowing the downtrend to continue.
Confirmation & Volume
Traders look for further downside movement, while higher volume supports the continuation signal.
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